SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion stock deal, just a few days after the space company’s historic IPO and less than two months after announcing a tie-up between the two.
The deal is meant to help SpaceX’s AI division — built around Elon Musk’s AI company xAI, which SpaceX merged with earlier this year — catch up to the major AI labs. Despite being a centerpiece of its IPO promises, SpaceX’s AI division has been in the midst of a restructuring after running into repeated controversies, like allowing users to generate non-consensual deepfakes of women and children.
SpaceX said Tuesday that the acquisition is likely to close in the third quarter of this year.
Before SpaceX came knocking, Cursor was on track to close a $2 billion funding round from the likes of Andreessen Horowitz, Thrive, and Nvidia that would have valued the AI coding startup at $50 billion, TechCrunch has reported.
...read more at techcrunch.com
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This isn't really news, the framework for this deal was announced in April.
You should've read that closer, the news is that they settled!
Right, they took the option they had to buy Cursor – which they were always likely to do. Why are we surprised?
It's nice when the market values you at 1500 x sales.
fuckin* insane!
The singularity was Musk all along huh?
All your code will get undressed too now.
Undressed and sent to Mars! hahaha
AI speedruns are getting ridiculous.
Has anyone figured out how these AI companies will make money?
I don't know either, they are losing billions fwiu. Their stocks sure go up a lot though
Really smart move by SpaceX. Since the stock has kept up its levels the all stock transaction isn’t that big of a deal. It’ll save Cursor money on training as well
They're gonna print 60B$ in stock to buy Cursor just like Saylor prints stocks to buy BTC?
you can just print things
Not sure if they're gonna print new shares, maybe they'll just use outstanding ones!
They would be stupid to not use the money from the ipo 🤷🏻♀️🤷🏻♀️